[lug] Re: Depreciation
nate at natetech.com
Fri Oct 24 12:53:50 MDT 2008
Bear Giles wrote:
> As an aside, Freakanomics explained this. It's not that it depreciates
> per se, like between the fourth and fifth years. It's because anyone
> buying the car will legitimately ask why you're selling the car after
> only 6 months. It must be a lemon. Therefore people adjust the
> perceived value of the car.
Yeah, Freakonomics was a good book.
So is "Predictably Irrational"...
Some great fodder in that book for discussion of how the price: "Free!"
affects the mind...
And then apply it to the people that are basically offering "Free
Healthcare"... I wrote up a blog entry about it.
Also quite a bunch of useful information in both books to explain the
SUPPOSEDLY irrational behavior of the stock market right now.
It's actually behaving quite normally... if you take some of these
thoughts into account in both books. (And it's a lot less "scary" when
you realize it's just people being people...)
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